APAC Infrastructure Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.33 Trillion |
| Market Size (2029) | USD 1.83 Trillion |
| CAGR (2024 - 2029) | 6.59 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
APAC Infrastructure Market Analysis
The Infrastructure Sector In Asia Pacific Market size is estimated at USD 1.33 trillion in 2024, and is expected to reach USD 1.83 trillion by 2029, growing at a CAGR of 6.59% during the forecast period (2024-2029).
- Southeast Asia is experiencing a boom in infrastructure, with major projects in Vietnam, Thailand, the Philippines, Malaysia, and Indonesia accepted. Those were supported in many cases by loans and other assistance provided by Japan and China. The distinction between Japan and China's one-year investment in Southeast Asia represents just part of the story. China’s investments in ASEAN infrastructure have risen rapidly in recent years.
- The backbone of the Indian economy, the infrastructure sector, is essential to improving the nation's overall development. Other industry sub-segments include telephony, power, roads, ports, etc. India has to enhance its infrastructure to reach its 2025 economic growth target of USD 5 trillion. The National Infrastructure Pipeline (NIP), along with other initiatives like "Make in India" and the production-linked incentives (PLI) program, was launched by the government to promote the expansion of the infrastructure industry. Historically, more than 80% of the money spent on infrastructure in the country has gone into expenditures related to transportation, electricity, water, and irrigation. Significant infrastructure development requires a substantial inflow of investor funds.
- Japan is still leading the Southeast Asia Infrastructure Race against China, with almost one-and-a-half times its rival projects outstanding. Japanese-backed projects in the region’s six largest economies – Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam – are valued at USD 367 billion. Vietnam is by far the biggest priority for Japan's participation in infrastructure, with projects pending worth USD 209 billion – more than half of Japan's total. This includes USD 58.7 billion of high-speed rail between Hanoi and Ho Chi Minh City in Vietnam.
- Overall, the prospects for regional infrastructure investment are highly promising. While COVID-19 has had a considerable influence on infrastructure development and finance throughout the area, part of that change is beneficial to project lenders and investors. The epidemic is hastening investment in low-carbon, climate-resilient infrastructure, as well as initiatives that improve internet connection and public health. And, as our survey results demonstrate, these two areas—ESG and digitalization—will continue to dominate the infrastructure sector for the foreseeable future.
APAC Infrastructure Market Trends
Increasing Investments in Infrastructure Sector
Raising financing for long-term infrastructure requirements has required some bold thinking. For the first time, the Philippines has planned to modernize its infrastructure by soliciting international finance and allowing foreign control of its utilities. Officials from the government of newly elected President Ferdinand Marcos Jr revealed their five-year growth strategy during a visit to London as part of the Philippine Economic Briefing. Modernization will be a major priority of the Philippines Development Plan, with 5.6% of the gross domestic product (GDP) devoted to infrastructure.
The Indian government has planned to build highways reaching 313 kilometers for Rs. 11,000 crores to overhaul the road infrastructure in Punjab, Haryana, and Rajasthan. As of March 2022, the transfer from the National Investment Fund (NIF) was pegged at Rs. 20,000 crores (USD 2.61 billion). The Ministry of Road Transport and Highways has been given almost INR 68,000 crore more in funding for 2022–23 than was initially planned for 2021–22. Of all the ministries in 2022–2023, this is the ministry with the most significant rise in absolute terms. This extra funding has been allocated almost entirely towards NHAI investments. After several years, NHAI won't need to borrow any money and will only use funds from the budget.
Local governments are raising funds for infrastructure projects by issuing special-purpose bonds (SPBs). In 2021, China allocated more than CNY 3.65 trillion (USD 573 billion) in SPBs for local governments, from which more than 95% of the funds were issued by December 2021. In addition, more than 50% of these raised funds were utilized for developing transport infrastructure, municipal administration, and industrial park infrastructure sectors. About 30% was spent on social projects, such as affordable housing, health and sanitation, education, elder care, and culture and tourism. In contrast, the remaining 20% was used to develop agriculture, forestry, irrigation, energy, and rural-urban cold chain logistics.
Transportation Infrastructure is Witnessing Significant Growth
China: China's transportation infrastructure is growing at a fast pace. For instance, in 2022, China's State Council released the 14th five-year plan for enhancing its transportation system. The plan aims to build and strengthen roads, railways, ports, and waterways, as well as the technology and human capital involved in the transportation industry. The country is highly focused on transportation infrastructure development. Currently, China has eight vertical (north-south) and eight horizontal (east-west) high-speed railways and has eliminated bottlenecks in regular speed railways.
China faced issues in the logistics sector, such as the poor state of warehouses and transportation equipment, urban traffic congestion, and talent shortage. The 14th five-year plan will address these issues and promote the development of intelligent warehousing and distribution facilities, improving equipment standardization, etc. The plan also enhances the infrastructure of suburban railways, multimodal freight transportation, and specialized transportation services.
India: According to the Economic Survey 2021–22, the country's road network has grown significantly in the current fiscal year compared to prior ones. In 2020–21, 13,327 km of roads were built, compared to 10,237 km in 2019–20, representing an increase of 30.2% over the previous year. 3,824 km of new roads were built in 2021–2022 (up till September). According to the Ministry of Road Transport and Highways, in the financial year 2022, the national highways awarded in India were around 12.7 thousand kilometers, while the constructed length was 10.46 thousand kilometers for the same time frame. In fiscal year 221, the length of national highways constructed peaked during the presented period at 13.3 thousand kilometers.
Japan: Japan is known for its advanced transportation infrastructure, including an extensive network of high-speed railways (Shinkansen), well-maintained roads, and efficient airports. Ongoing investments were being made to expand and modernize these systems. Several airports in Japan, including Tokyo's Haneda and Narita airports, have been undergoing expansion and renovation to accommodate increasing air traffic and tourism. Investments were made to enhance passenger facilities and improve runway capacity. Japan is known for its extensive and efficient high-speed rail network, the Shinkansen. The country has been working on expanding and upgrading this network to connect more regions and improve connectivity between cities. In September 2023, The Japanese government invested around P1.5 trillion (USD 26 billion) worth of infrastructure projects through an official development assistance (ODA) focusing on funding transport infrastructure programs. The North-South Commuter Railway (NSCR) Project, Metro Manila Subway Project (MMSP), LRT-1 Cavite Extension, LRT-2 East Extension, and MRT-3 Rehabilitation are among the transportation development programs, according to the Department of Transportation (DOtr).
APAC Infrastructure Industry Overview
The market is fragmented, as many new entrants focus on bagging projects to strengthen their positions among the market's key players and are expected to grow during the forecast period due to private and venture capital investment.
Key players in the market are China State Construction Engineering, China Communications Construction Company, Power Construction Corporation of China, Samsung C&T, and Obayashi Corporation.
APAC Infrastructure Market Leaders
-
China State Construction Engineering
-
China Communications Construction Company
-
Power Construction Corporation of China
-
Samsung C&T
-
Obayashi Corporation
*Disclaimer: Major Players sorted in no particular order
APAC Infrastructure Market News
May 2023: ICG, a UK-based alternative asset management firm, made its first deal in the Asia Pacific infrastructure investment team's maiden transaction, a USD 50 million investment in the renewable energy firm Amp Energy India Pvt. Ltd. ICG has also secured the right to invest an additional USD 50 million in Amp Energy. Asia-wide locations make up the ICG's APAC infrastructure investment team. It concentrates on corporate-led agreements and mid-market transactions. Last year, ICG closed the deal on its Asia Pacific Infrastructure Fund IV for USD 1.1 billion.
May 2023: CSCEC invested in, constructed, and runs the center. The project has a total construction area of about 420,000 square meters. It is divided into eight functional areas from south to north: a large theatre, conference and exhibition centers, hotels, a government service center, a big data center, and other facilities. It also includes a hotel shopping mall and cultural and official services.
April 2023: In order to establish a long-term partnership to investigate the opportunities emerging in the new Green Hydrogen market, Larsen & Toubro (L&T), an Indian multinational company involved in EPC Projects, Hi-Tech Manufacturing, and Services, a manufacturing binding Agreement with McPhyEnergy, a leading electrolyzer technology and manufacturing company based in France.
APAC Infrastructure Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Asia Pacific countries are investing in infrastructure projects to improve regional connectivity and promote economic integration
4.2.2 The Asia Pacific region has a large and growing population, along with a rising middle class
4.3 Market Restraints
4.3.1 Limited public budgets and difficulties in attracting private investment can hinder the financing of large-scale projects
4.3.2 Delays in land acquisition can significantly impact project timelines and costs
4.4 Market Opportunities
4.4.1 The rapid growth of mobile and internet usage in the Asia Pacific region has created opportunities for investment in telecommunications infrastructure
4.5 Value Chain / Supply Chain Analysis
4.6 Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Market Insights
4.7.1 Current Economic and Construction Market Scenario
4.7.2 Technological Innovations in the industry
4.7.3 Impact of Government Regulations and Initiatives on the Industry
4.7.4 Impact of COVID -19 on the market
5. MARKET SEGMENTATION
5.1 By Infrastructure segment
5.1.1 Social Infrastructure
5.1.1.1 Schools
5.1.1.2 Hospitals
5.1.1.3 Defence
5.1.1.4 Other social infrastructures
5.1.2 Transportation Infrastructure
5.1.2.1 Railways
5.1.2.2 Roadways
5.1.2.3 Airports
5.1.2.4 Waterways
5.1.3 Extraction Infrastructure
5.1.3.1 Power Generation
5.1.3.2 Electricity Transmission & Disribution
5.1.3.3 Water
5.1.3.4 Gas
5.1.3.5 Telecoms
5.1.4 Manufacturing Infrastructure
5.1.4.1 Metal and Ore Production
5.1.4.2 Petroleum Refining
5.1.4.3 Chemical Manufacturing
5.1.4.4 Industrial Parks and clusters
5.1.4.5 Other manufacturing infrastructures
5.2 By Country
5.2.1 China
5.2.2 India
5.2.3 Philippines
5.2.4 Japan
5.2.5 South Korea
5.2.6 Rest of Asia Pacific
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Mergers & Acquisitions
6.3 Company Profiles
6.3.1 China State Construction Engineering
6.3.2 China Communications Construction Company
6.3.3 Power Construction Corporation of China
6.3.4 Samsung C&T
6.3.5 Obayashi Corporation
6.3.6 Shanghai Construction Group
6.3.7 Hyundai E&C
6.3.8 China Petroleum Engineering Corporation
6.3.9 L&T
6.3.10 China Metallurgical Group*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
APAC Infrastructure Industry Segmentation
Infrastructure is the backbone of domestic and international commerce and industrial and agricultural production. It is the fundamental organizational and physical framework necessary to operate a firm successfully. The infrastructure sector focuses on major infrastructure such as power, roads and bridges, dams, and urban infrastructure.
The market is segmented by the Infrastructure segment (Social Infrastructure, Transportation Infrastructure, Extraction Infrastructure, Manufacturing Infrastructure) and by country (China, India, Japan, South Korea, Philippines, and the Rest of Asia-Pacific).
The report offers market size and forecast values (USD) for all the above segments, and the COVID-19 impact is comprehensively covered.
| By Infrastructure segment | |||||||
| |||||||
| |||||||
| |||||||
|
| By Country | |
| China | |
| India | |
| Philippines | |
| Japan | |
| South Korea | |
| Rest of Asia Pacific |
APAC Infrastructure Market Research FAQs
How big is the Infrastructure Sector In Asia Pacific Market?
The Infrastructure Sector In Asia Pacific Market size is expected to reach USD 1.33 trillion in 2024 and grow at a CAGR of 6.59% to reach USD 1.83 trillion by 2029.
What is the current Infrastructure Sector In Asia Pacific Market size?
In 2024, the Infrastructure Sector In Asia Pacific Market size is expected to reach USD 1.33 trillion.
Who are the key players in Infrastructure Sector In Asia Pacific Market?
China State Construction Engineering, China Communications Construction Company, Power Construction Corporation of China, Samsung C&T and Obayashi Corporation are the major companies operating in the Infrastructure Sector In Asia Pacific Market.
What years does this Infrastructure Sector In Asia Pacific Market cover, and what was the market size in 2023?
In 2023, the Infrastructure Sector In Asia Pacific Market size was estimated at USD 1.25 trillion. The report covers the Infrastructure Sector In Asia Pacific Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Infrastructure Sector In Asia Pacific Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
APAC Infrastructure Industry Report
Statistics for the 2023 APAC Infrastructure market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Infrastructure analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
